Chinese government pledges $7.34 billion for Philippine infrastructure

Image capture of video via Duterte News Report's YouTube Account

The Chinese government has committed a combined $7.34 billion (that’s around P376.09 billion) in soft loans and grants to the Philippines.

It is embodied in the agreements signed between the Philippine government and China during Chinese Premier Li Keqiang’s visit to the Palace where he  met with President Rodrigo Duterte.

According to Finance secretary Sonny Dominguez, the bulk or $7.19 billion of the amount came in the form of loans which is intended to finance 10 big-ticket infrastructure projects.

The remaining $148.22 million was offered as grants to assist in the construction of two bridges as well as the government’s drug rehabilitation and Marawi reconstruction efforts.

According to Philippine Star, of the $7.19 billion, $3.21 billion will finance the first basket of infrastructure projects which Manila submitted to Beijing earlier for funding.

The loan and grant package include the $234.92-million Kaliwa-New Centennial Water Source in Quezon province, the $72.49-million Chico River Pump Irrigation Project in North Luzon, and the $2.91 billion Philippine National Railways South Long Haul Railway project.

The remaining $3.98 billion loan represents the second batch of projects up for funding assistance from China.

“For the second basket of projects, the Philippines and China agreed to line up about $3.98 billion in loans that may include $947.64 million for the Subic-Clark Railway and $424.81 million for the Davao City Expressway,” the DOF said.